The island state of Hawaii, with its beautiful beaches and tropical climate, is always near the top of the list for high real estate prices and large numbers of buyers interested in obtaining homes here. But the state was hit hard by the downturn in the U.S. housing market as investors began to doubt the value of owning real estate or property in a falling market. The Hawaii real estate market suffered universally as many mortgage-holders found themselves upside down on their mortgages, owing more money than their homes were even worth, and those who bought at high prices during the market's boom suddenly saw the values of their investment crashing.
Though the Hawaii market has seen some overall improvements since late 2008 when the housing market downfall began, it remains highly volatile. As recently as the month of April, the Associated Press reported that there were more than 1,470 foreclosure notices, more than double the figure from a year earlier and enough to put foreclosures in Hawaii at a figure of one for every 387 households.
But every real estate market is local, and the lingering effects of the recession vary by region. The Maui market recently saw encouraging signs, with its median home sales price in June higher than figures from a year ago, a positive sign that the market may be turning. ABC reported that both Kauai and the Big Island were also showing signs of markets re-emerging over the summer.
The median price for homes sold in Hawaii County, or the Big Island, rose slightly in the second quarter of 2010 from the first quarter, though both of those figures stood below the figure for 2009's Q4. Kona saw a healthy increase in its median price from the first to the second quarter of this year, rising by nearly $50,000. The Pacific Business Journal reported that between January and June of this year, sales of existing single-family homes were up 32.5% on Oahu, 43% on Maui, 71.8% on Kauai and 45.8% on the Big Island. In addition, condo sales were up 46% on Oahu, 64% on Maui, 65.% on Kauai and 101.5% on the Big Island. Despite the uptick in sales activity, the median prices of Hawaii homes for sale still struggles. Only Oahu saw its median sales price increase over the six-month period, up a mere 2%. The other areas saw prices fall between 2% and 7%.